KKR, AEW Seek Exits from Chinese Commercial Property Holdings

KKR, AEW Seek Exits from Chinese Commercial Property Holdings
News| July 21, 2026| Paul Bubny
Apartment Buildings

KKR and AEW Capital Management seek to sell commercial property holdings in China as global investors continue to retreat from the country’s prolonged real estate downturn, Bloomberg News reported. KKR is marketing nine properties across China, including a high-end apartment complex in suburban Beijing and a hotel on Shanghai’s historic Bund, while AEW is looking to sell several Beijing office assets and Shanghai’s Pudong Development Bank building (pictured).

Sources told Bloomberg both firms expect any sales to garner enough to repay bank loans, implying valuations of roughly 50% to 60% of the original purchase prices. The planned divestments underscore mounting pressure on foreign real estate investors after years of falling property values and weak leasing demand in China.

Overseas investors poured nearly $140 billion into Chinese commercial real estate over the past 15 years but have largely become net sellers amid an economic slowdown and oversupply, according to Bloomberg.

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